Shares of 2 Egyptian companies to be offered to strategic investors

CAIRO: Egyptian Minister of Planning and Economic Development Hala Al-Saeed said that the army is planning to put up two of its subsidiaries for sale at some point during the first quarter of the new year, in a move aimed at increasing the participation of the private sector in the economy.
In an interview with Egyptian TV, the minister added that the shares of the two companies may be offered at first to strategic investors, with the remaining percentages sold in an initial public offering.
“We will make a decision in the first quarter of this year. There are three other companies that I will not announce,” she said.
The two companies, owned by the army’s National Service Projects Organization NSPCO, are the National Petroleum Company — which has a network of petrol stations across the country — and the National Company for Producing and Bottling Natural Water and Olive Oils (Safi).
“We chose the two companies … because they are appealing … We are talking about something that will allow a strategic investor to increase and maximize the value of the asset,” the minister said.
Ayman Soliman, CEO of Egypt’s Sovereign Fund, revealed a few days ago that Egypt plans to sell three companies owned by the NSPCO in 2021, which represents a historic offering of part of the economy to private investment.

Soliman said that the sale of more assets is currently being studied, indicating that shares of up to 100 percent in a mineral water company and a petroleum company will be offered in the first quarter of 2021.
He did not specify the three potential companies for sale but said that the initial plan is to sell up to 100 percent in about 10 companies owned by the NSPO.
Soliman confirmed the fund’s intention to select three state companies to be listed on the stock exchange during the first quarter of 2021, noting that these measures are in cooperation with the NSPO, affiliated with the Ministry of Defense.
“The initial market offering is among the targets that the fund is looking for, and it will be considered bilaterally with partners who enter these opportunities. But the offering in itself is not a condition for taking part in these investments,” Soliman said.
He explained that the goal of the fund is to create an investment opportunity in order to maximize the value of the current assets of the companies with the investor or developer who participates with the fund in this opportunity.
Soliman revealed that partial or total liquidation or exit will be by agreement between the two parties, like any agreements made in investment funds.
“Our requirements are greatly flexible. The goal is a minority share for the sovereign fund. Either part or all of it is used in an initial offering. These are the determinants that will be agreed upon with the partner, and there are no rules,” he added.